David Fuller's view As an energy self-sufficient leading exporter of commodities, Brazil remains a Fullermoney secular theme. However I have two medium-term concerns:

1. The General Election on Sunday 3rd October: I hope and expect that the new President and government will continue the sound economic governance shown by Luiz Inácio Lula da Silva of the Worker's Party.


2. Stock market supply: Petroleo Brazileiro (PETR4 BS), Brazil's second largest company in terms of capitalisation has underperformed due to a $70 billion share offering.


Governance is everything and investors will want reassurance that 'Lula's' successful economic stewardship will be continued.

Petrobras has a questionable chart and a sustained push back above R30 is required to indicate that demand has regained the upper hand.

Brazil's IBOV Index remains rangebound but is gradually working its way towards a retest of resistance just above the psychological 70,000 level. A break in the progression of higher reaction lows, currently requiring a close beneath 63,800, would be necessary to offset current scope for sideways to higher trading.